The Australian Competition and Consumer Commission proposes to authorise Cockatoo Coal and Stanmore Coal to collectively bargain with the Surat Basin Rail joint venture for access to its new rail line in Queensland.
Once constructed, the Surat Basin Rail Line will connect coal mines in the Surat Basin region to an export supply chain for the first time.
Access to the Surat Basin Rail Line is necessary for coal to be transported to the new Wiggins Island Coal Export Terminal being built at the Port of Gladstone, Queensland.
The Applicants are both participating in Stage 2 of the expansion of the Wiggins Island Terminal.
"This decision allows coal miners to conduct more timely and efficient negotiations to secure rail capacity, which is likely to avoid any unnecessary delays in both the construction of Stage 2 of the Wiggins Island terminal and coal export growth," ACCC chairman Rod Sims said.
"The ACCC is satisfied that the voluntary nature of the arrangements, the limited composition of the collective bargaining group and the limited scope of the negotiations means there is little, if any, public detriment."
The ACCC proposes to grant authorisation for 22 years, to cover initial contract negotiations and to allow any long term rail contracts to be given effect to for an initial 20 year term.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application.
More information about this application for authorisation and the ACCC's draft decision will be available by following the Public registers link on the ACCC's website www.accc.gov.au.